The ROI of Customer Engagement

Transcription

1 The ROI of Customer Engagement The Business Case for Localizing the Global Customer Journey By Donald A. DePalma and Rebecca Ray September 2017

2 The ROI of Customer Engagement By Donald A. DePalma and Rebecca Ray September 2017 Copyright 2017 by Common Sense Advisory, Inc., Cambridge, Massachusetts, United States of America. Published by: Common Sense Advisory, Inc. 100 Cambridgepark Drive Cambridge, MA USA No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Permission requests should be addressed to the Permissions Department, Common Sense Advisory, Inc., 100 Cambridgepark Drive, Cambridge, MA 02140, , info@commonsenseadvisory.com. See for usage guidelines. Trademarks: Common Sense Advisory, Global Watchtower, Global DataSet, DataPoint, Globa Vista, LSP Metrix, MarketFlex, Quick Take, Technical Take, and TMS Live are trademarks of Common Sense Advisory, Inc. All other trademarks, product names, logos, and brands are the property of their respective owners. Information is based on the best available resources at the time of analysis. Opinions reflect the best judgment of Common Sense Advisory s analysts at the time, and are subject to change.

3 The ROI of Customer Engagement i Table of Contents Topic... 1 Preparing for Global Customer Engagement... 2 Customer Engagement in Other Countries Raises the ROI Question... 2 Localization Means Adaptive Marketing More than Just Translation... 3 Making the Case to Localize: Measurement Is the Standard of Proof... 3 Measuring ROI Begins with the Product, But Selling Matters the Most... 9 Establish Awareness Think: If People Don t Know You, They Often Won t Buy from You Plan: Develop a Strategy to Increase Awareness in New Markets Assess: Determine Which Assets Grab More Mindshare Localize: Manage and Build Awareness-Creating Activities Summary: Increased Awareness Keeps Prospects on Track to Buying Increase Consideration Think: Give Prospects the Means for More Complete Consideration Assess: Determine Which Localized Content Enhances Consideration Calculate: Estimate the Opportunity with and without Localization Invest: Localize the Materials that Increase Buyer Consideration Review: Determine Whether Localized Options Cost Less in the Long Run Summary: Increased Consideration Raises Purchasing Intent Enable the Purchase Empower: Remove Language and Related Obstacles to Transactions Assess: Determine Where Localization Increases Purchase Likelihood Calculate: Adjust the Total Addressable Market for Localized Channels Review: Track Changes in Completed Transactions for Localized Offers The Next Step: Customer Engagement Actually Begins with the Purchase Recommendations New to Localization? Start Here Been to the Localization Rodeo Before? Start Here Bring Your Company s Collective Resources to Bear The Localization Challenge: Link to the International Expansion Strategy Related Research About Common Sense Advisory Future Research Applied Research and Advisory Services Figures Figure 1: Three Critical Phases and Sample Actions in the Buying Cycle... 2 Figure 2: Range of Content that Requires Adaptation for Each Locale... 5 Figure 3: Variables that Affect the Choice of Target Markets... 9 Figure 4: B2B Preferences for Local-Language Information and Interfaces Figure 5: B2C Preferences for Local-Language Information and Interfaces Figure 6: Failure to Localize Deflates the Size of the Total Addressable Market Figure 7: Cost of Fixing Problems throughout Product Life Cycle Copyright 2017 by Common Sense Advisory, Inc. September 2017

4 ii The ROI of Customer Engagement Figure 8: Frequency of B2B Purchases at English-Language Sites Figure 9: B2C Purchase Likelihood at English-Language Sites Figure 10: Both B2B and B2C Prefer Localized Customer Care Tables Table 1: Direct and Indirect Costs of Localizing and Not... 6 Table 2: Business Considerations for Market Entry... 7 Table 3: Sample Metrics and the Teams That Own Their Alignment... 8 Table 4: Checklist for Establishing a Return on Localization Investment Table 5: Generate and Raise Awareness Assets to Assess, Monitor, and Employ Table 6: Increase Consideration Assets to Assess, Monitor, and Employ Table 7: Key Performance Indicators for Transactions in International Markets Table 8: Align Localization Messages with Business Functions September 2017 Copyright 2017 by Common Sense Advisory, Inc.

5 The ROI of Customer Engagement 1 Topic What benefits should you expect from engaging with customers in their own language? Usually more mobile page views, completed transactions, up-sells, and ongoing relationships. But CSA Research has found that most companies don t formally measure return on investment (ROI) for localization. Measurement is the standard of proof for any business initiative. Everyone responsible for international or domestic multicultural markets should develop a convincing case for localized products, services, and programs, along with mobile sites and websites that interact appropriately with target audiences. What is this report about? Who should read it? What will you learn? What questions does it answer? It provides a framework for establishing ROI for localization. The Preparing for Global Customer Engagement chapter outlines the steps to take as you make decisions about investing to increase revenue share in existing or new markets. We apply the lens of the customer buying cycle to describe investment in establishing customer awareness in those markets, increasing consideration, and enabling the purchase. This lens ties ROI to the digital transformation underway at many companies and to the global content strategies that underpin them. Anyone responsible for supporting the customer experience either internationally or for domestic markets speaking other languages will benefit from the advice and practices outlined in this report. This report will help managers develop and present the business case for localization across the customer buying cycle. It will assist those with responsibility for sales and marketing to understand the importance of adapting brand content to be locally competitive. How do you determine if it makes financial sense to localize? Can you show revenue resulting from localization? How do you measure and tie the results to supporting the global customer journey? Is localizing the product or service enough? How do you convince people to invest in localization? Copyright 2017 by Common Sense Advisory, Inc. September 2017

6 The ROI of Customer Engagement 35 About Common Sense Advisory Common Sense Advisory, Inc. is an independent research firm committed to objective research and analysis of the business practices, services, and technology for translation, localization, and interpreting. With its research for both Global Leaders and Industry Providers, Common Sense Advisory endeavors to improve the quality and practice of international business, and the efficiency of the online and offline operations that support it. To find out more about our research and how to become a member: us info@commonsenseadvisory.com. Visit Call Future Research Common Sense Advisory seeks interviewees from the community of people involved in building business applications for international use. If you would like to be interviewed or have clients who would like to share their experiences, please us at info@commonsenseadvisory.com. We anonymize participants and hold all information in the strictest confidence. Applied Research and Advisory Services This report and other Common Sense Advisory research into the best practices of business globalization serve as the foundation for our Applied Research and Advisory Services including International Customer Experience Assessments, Vendor Selection, Localization Business Process Audits, Globalization Excellence and Optimization Assessments, and Globalization Roadmaps. us at info@commonsenseadvisory.com for more information. Copyright 2017 by Common Sense Advisory, Inc. September 2017